This quiz works best with JavaScript enabled. Home > Economics > Finance > Credit > Credit – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Credit Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To pay for goods /services and at end of month they pay bill A) Credit cards. B) Credit history. C) Delinquent. D) Credit report. Show Answer Correct Answer: A) Credit cards. 2. A measure of a person's ability and willingness to pay debts on time. A) Credit rating (score). B) Collateral. C) Credit limit. D) None of above. Show Answer Correct Answer: A) Credit rating (score). 3. ..... is a report that details how a person has used credit in the past. A) Credit history. B) Credit report. C) Credit score. D) Credit card. Show Answer Correct Answer: B) Credit report. 4. Surrender of notes to the bank by the government by a specific period and receive new currency is called ..... A) Monetization. B) Banking. C) Demonetisation. D) Digital banking. Show Answer Correct Answer: C) Demonetisation. 5. Has $ 250, 000 dollars worth of insurance in case they lose all their money A) Bank. B) Credit Union. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 6. The Truth-in Lending Act of 1969 requires that all contracts for credit express the finance charge as a(n) A) APR. B) Fraction. C) Dollar amount. D) Annual percentage ratio. Show Answer Correct Answer: A) APR. 7. Organization which supervises the credit activities of lenders in the informal sector? A) Reserve bank of India. B) Central government. C) No organisation. D) State government. Show Answer Correct Answer: C) No organisation. 8. Which federal government student loan will the government pay interest as long as you are at least a half time student. A) Subsidized Federal Student Loan. B) Direct Plus Student Loan. C) Unsubsidized Federal Student Loan. D) Guarantee Student Loan. Show Answer Correct Answer: A) Subsidized Federal Student Loan. 9. The ..... legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India. A) Prime Minister. B) Law. C) Government. D) Court. Show Answer Correct Answer: B) Law. 10. Which one of the following is not a feature of money? A) A unit of account. B) Medium of exchange. C) A store of value. D) Lack of divisibility. Show Answer Correct Answer: D) Lack of divisibility. 11. Loan for the purchase of real estate A) Installment. B) Interest. C) Mortgage. D) Unsecured. Show Answer Correct Answer: C) Mortgage. 12. Which of the following will increase your credit card's APR? A) Paying the minimum. B) Missing a credit card payment. C) Paying off the full balance. D) Cashing in on rewards points. Show Answer Correct Answer: B) Missing a credit card payment. 13. Which is an effect of poor credit? A) Your health may deteriorate. B) If you are married, it could cause your partner to divorce you. C) You can't get the job you want. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. All of the following make up the big three credit reporting agencies EXCEPT: A) Experian. B) Federal Reserve. C) TransUnion. D) Equifax. Show Answer Correct Answer: B) Federal Reserve. 15. What is an Advantage of having credit? A) Convenience. B) High interest. C) Too much debt. D) High bills. Show Answer Correct Answer: A) Convenience. 16. The maximum you can charge on your credit card is ..... A) Speed limit. B) Credit limit. C) $ 2, 000. D) How much you can overspend. Show Answer Correct Answer: B) Credit limit. 17. What can you do it make sure you have a healthy credit report? A) Review your credit report each year. B) Make sure everything on your credit report is correct. C) Dispute any errors you find on your report with your credit agency. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Joan earns $ 3, 500 a month and only has $ 300 in expenses she must pay. This will affect which of the 3 C's? A) Character. B) Capital. C) Capacity. D) Credibility. Show Answer Correct Answer: C) Capacity. 19. Which of the following MOST influences your credit score? A) Types of Credit Used. B) Payment History. C) Length of Credit History. D) Amounts Owed. Show Answer Correct Answer: B) Payment History. 20. How can you go to college and not get a student loan? A) Scholarships. B) Grants. C) Scholarships and Grants and go to a Work Study Program. D) Get good grades. Show Answer Correct Answer: C) Scholarships and Grants and go to a Work Study Program. 21. If you are under 18 years old, you will need ..... to get a credit card. A) A large downpayment. B) A line of credit already established. C) A credit rating of 650 or higher. D) A cosigner, like a parent. Show Answer Correct Answer: D) A cosigner, like a parent. 22. Which of the following is NOT a step out of debt? A) Consolidate the debt. B) Quit borrowing money. C) Sell Something. D) Use the debt snowball method. Show Answer Correct Answer: A) Consolidate the debt. 23. The least amount that must be paid on a credit card each month is A) Late Fee. B) Minimum Payment. C) Credit Limit. D) Payment amount. Show Answer Correct Answer: B) Minimum Payment. 24. The cost of borrowing money is referred to as A) Credit Line. B) Interest. C) Annual Percentage Rate. D) Credit. Show Answer Correct Answer: B) Interest. 25. A written statement about a consumer's credit history? A) Capacity. B) Credit History. C) Credit Report. D) Character. Show Answer Correct Answer: C) Credit Report. 26. If you file bankruptcy how long will it stay on your credit record? A) 2 years. B) 10 years. C) 7 years. D) 5 years. Show Answer Correct Answer: B) 10 years. 27. What is the name of the book that Jean Chatzky wrote? A) Pay it Down. B) Girl, Credit is Cool. C) I Like Oprah. D) Girl, Get Your Money Straight. Show Answer Correct Answer: A) Pay it Down. 28. What is meant by an uncollateralized loan? A) A loan not backed by a co-signer who agrees to cover the amount of the loan. B) A home equity loan. C) A personal loan without assets to cover the loan amount. D) A loan taken on a life insurance policy. Show Answer Correct Answer: C) A personal loan without assets to cover the loan amount. 29. A loan can be denied by a lender because of a person's- A) Gender. B) Education. C) Credit history. D) Health. Show Answer Correct Answer: C) Credit history. 30. Formal sector loan sources are ..... A) Money lenders, friends, relatives. B) Land owners, employers. C) Banks, Cooperative societies, SHGs. D) Reserve Bank of India, The World Bank. Show Answer Correct Answer: C) Banks, Cooperative societies, SHGs. ← PreviousNext →Related QuizzesFinance QuizzesEconomics QuizzesCredit Quiz 1Credit Quiz 2Credit Quiz 3Credit Quiz 5Credit Quiz 6Credit Quiz 7Credit Quiz 8Credit Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books